Inventoriable costs are expensed on the income statement:
A)after the products are manufactured.
B)when the products are sold.
C)when direct materials for the product are purchased.
D)not at any particular time,it varies.

Question

Quizplus · Accepted Answer

Inventoriable costs, such as direct materials, direct labor, and factory overhead, are all only expensed on the income statement when the finished products are sold. This is because these costs are initially recorded as assets on the balance sheet until the products are sold, at which point they become expenses on the income statement in the form of cost of goods sold.

Inventoriable Costs Are Expensed on the Income Statement